using credit cards to rebuild credit

[Anonymous]

I was told to get about 2 credit cards to rebuild my credit and raise my score, instead trying to pay off alot of debt and collections that have accumulated over the last 15 year. I did that, but am unclear as to how they will report. I was told to use the credit card in full, then make the minimum payment each month or to use the card for at least one purchase each month and pay it back immediatly. I've been using the cards and paying them back consistently over the last 2 months, but don't see any changes in the credit report. Whats the truth about this scenerio that I may be missing?

Thanks

[Anonymous]

im a newb, but i think i would leave one with zero balance, and one at 9% utilization and make payments on it twice a month. thats what i was planning to do, if i ever get a card in the mail.

[-NewGuy-]

Welcome to the forums. As far as optimizing card usage goes, try and have all report zero except one that reports 1-9%, as described above. 

However, ignoring collections and debt is not a good idea, and will keep your score down. What kind of debt, and what negatives do you have on your report? 

[Anonymous]

Whoever told you to max out the card and pay the minimum on it, it's either a friend that has envy towards you, or an idiot. It's just common sense that you don't want to ramp up charges and pay the minimum on it. Like others have said, keep one card at 1-9% and others show $0. Make sure you do that at least 3 days beofre your statement cuts. If you don't know, check the statements, or just call your CCC's.

[Anonymous]

I didn't realize it's best to have zero balances on all but one card. Thanks,

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@-NewGuy- wrote:

Welcome to the forums. As far as optimizing card usage goes, try and have all report zero except one that reports 1-9%, as described above. 

However, ignoring collections and debt is not a good idea, and will keep your score down. What kind of debt, and what negatives do you have on your report? 

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[Anonymous]

I didn't realize it's best to have zero balances on all but one card. Thanks,

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[daddiggingout]

I had no open credit cards and about five derogs on my reports.  I was approved for a CAP ONE QS cc with a cl of $300.00 about seven weeks ago.  While I had hoped for 20 or 30 points once the cc reported, I was thrilled when I gained 80 points on my equifax this month.  I had used the card repeatedly and payed it down about seven times, leaving 1% reflecting upon the closing date of Nov. 6th.  So a week later I received a huge credit score jump for using this one little cc.  So my suggestion is to try what had been suggested to me on Creditboards, and leave a measly 1% reflecting at the closing date for each billing cycle.

[Burned2manybridgesB4]

OP....

Forget about scores, right here, right now. It's irrelevant during rebuild, as it'll be like watching a roller coaster going up, and down...for a very long time.

Use your cards, pay the bill....wash, rinse, repeat. Do this for six months. Then do the "only one card showing under 10% reporting."

During this current six..concentrate one getting the baddies knocked off.